Differences among entrepreneurs : “Are you experienced?” may be the wrong question

Though often considered a critical factor in predicting venture success, past research into the effects of founder experience has often produced mixed results. What factors influence founders’ decisions to use, or not use, experience they possess? This study examines the role job dissatisfaction might play in a founder's decision to leverage multiple types of experience (sector, entrepreneurial, role model and education) on external (sales performance) and internal (founder intrinsic satisfaction) outcomes. Greater dissatisfaction was associated with decreased likelihood of founders building on sector experience. While dissatisfaction influenced the use of experience, greater experience levels did not consistently account for higher levels of venture sales performance. Moreover, no differences were found in founders’ intrinsic satisfaction, regardless of sales performance. The differing results in the two outcome measures suggest potential differences in the goals and consequent actions of entrepreneurs in the study. By examining multiple types of experience, and what might moderate founders’ use of that experience, these findings provide additional insights into the entrepreneurial process.